Guide to buying car insurance online

Buying car insurance online is a quick and easy way to get coverage. Just follow these few steps and you’ll be able to purchase a policy and get same-day car insurance:

• Figure out what coverage you need and how much.
• Gather your important documentation.
• Compare quotes using an online car insurance estimator tool.
• Choose the insurer that offers the right coverage for you at the right price. Complete the process by purchasing the policy on the company's website.
• Print or download proof of insurance.

We’ll go into each of these steps, but we know buying insurance online might not be the right choice for everyone. If you don’t want to buy insurance through a website, you can talk to an agent or speak with a car insurance company representative.

Key highlights

• Buying insurance online is a fast, convenient way to get car insurance coverage.
• Most major insurers allow you to get auto insurance quotes online, although some insurers might not let you complete the purchase process without talking to an agent.
• In some cases, purchasing car insurance online is cheaper than buying through an agent, but you should not automatically assume this will be the case.

Figure out what coverage you need and how much

The first step in buying car insurance is determining what type of coverage you require and how much of it you need.

Nearly every state requires that you carry at least a minimum amount of car insurance coverage. But chances are good you will need to purchase coverage limits higher than the minimum to ensure you are fully protected financially. If you have a loan or lease, you will need to buy comprehensive and collision coverage as well. (We explain these coverage options below.)

Consider other optional coverages that meet your needs, like rental reimbursement and roadside assistance.

Gather important documentation

Before you start shopping for a policy, make sure you have some key personal information at your fingertips. Insurers will likely ask you to furnish information such as your name, address and date of birth.

Insurers will also likely request your driver's license and vehicle identification numbers. You may be asked for a detailed driving history and other information about your vehicle, including the make, model, year and other key details. You’ll need to provide this information for every driver and every car in the household.

Compare quotes

Once you know the type of policy you need, it's time to start shopping. It is best to gather quotes from several companies to compare car insurance rates and contrast them and find the best possible deal. Using an online car insurance estimator tool can speed the process.

Select and purchase the policy you want

After comparing quotes, choose the insurance company that offers the right coverage for you at the best possible price. Complete the process by purchasing the policy on the company's website. You'll need to pay the amount due and complete any final online documentation required.

Print or download proof of insurance

After purchasing your policy, you need to obtain proof of insurance. Many insurers allow you to print an ID card at the company website. Or, you might be able to access proof of coverage via the insurer's app, or download a copy to your phone. You should always have a paper copy of your insurance coverage in your vehicle.

Why buy car insurance online?

There are many different ways to buy car insurance, all of which have pros and cons – including purchasing a policy online.

Buying car insurance online is quick and convenient. You can find and purchase a policy and have it go into effect the same day. You can obtain a policy 24 hours a day, allowing you to shop for car insurance when it is most convenient.

Not surprisingly, online shopping is popular with consumers. J.D. Power’s 2023 Insurance Shopping Study found that among those who shopped and switched their auto insurance company, 33% used a website and 11% used an app to purchase their new policy.

“The main advantages to purchasing auto insurance online include the convenience to do so anytime that suits your schedule and the expediency of receiving a quote,” says Christine O’Brien, president of the Insurance Council of New Jersey.

Some websites also allow you to get car insurance quotes from several companies simultaneously. This can save you a lot of time compared to contacting many insurance companies and asking each to give you a quote.

Another big advantage of buying a policy online is the potential savings compared to buying direct, O’Brien says. For example, you might get a discount for using the online route to shop for a policy. Buying online might also help you avoid the commissions you normally pay when purchasing through an agent.

On the other hand, some people might prefer the guidance of a car insurance agent who can discuss coverage options in detail and help them determine which type of policy is best.

“A potential disadvantage is that without the guidance of an insurance agent, you may not fully understand the various coverages that you’re purchasing,” O’Brien says.

Some people are also uncomfortable sharing personal information when comparing quotes online. This can lead to inaccurate quotes.

What you need to know before you buy car insurance online

Whether you shop online or buy car insurance some other way, you must have a grasp of car insurance basics before you begin the process. The major types of car insurance coverage are:

• Liability coverage: This coverage comes in two parts. Bodily injury liability covers you if you harm another person in an accident. Property damage liability covers damages to another person's vehicle or property. Nearly all states require you to carry at least a minimum level of liability coverage.
• Collision coverage: This type of coverage protects your car and covers losses that occur when you collide with another vehicle or object.
• Comprehensive coverage: This type of coverage protects your car in the event of non-collision damage. For example, if hail damages your car or vandals break the windows, comprehensive covers the repairs.
• Medical payments coverage and personal injury protection: These types of coverage cover the cost of medical care related to your injuries or those of a passenger regardless of fault. They are required by law in some states.
• Uninsured and underinsured motorist coverage: Uninsured motorist insurance helps to cover your losses if you are involved in a crash where the other driver is at fault but does not have insurance. Underinsured motorist insurance offers similar protection in the event that the other driver has insurance, but not enough to fully cover your loss. These coverages are required by law in some states.

Choosing the best auto insurance provider

Choosing the best car insurance provider requires a little effort on your part. The best way to find the right insurer is to compare quotes from several car insurance companies to see which offers the right coverage at the best price.

“Keep in mind that price alone may not determine the best policy for you,” O’Brien says. “The best price with the most coverage to protect you is what you’re shopping for.”

Each insurance company has its own formula for setting rates. That means your own insurance profile might make you a better fit at one company than at another. If you do not gather multiple quotes from insurers, you will never know if you are leaving money on the table.

Other things you should look for when choosing a car insurance company include:

• Whether it offers discounts that can help you lower your insurance costs.
• How strong the company is financially. Ratings from agencies such as A.M. Best can help here.
• Online reviews from customers and customer satisfaction ratings from companies such as J.D. Power.

List of insurers that offer car insurance quotes online

Virtually all major car insurance companies – and many smaller ones – offer free quotes online. Companies that let you get quotes online include:

• State Farm
• Progressive
• Geico
• Allstate
• Liberty Mutual 
• Farmers
• Travelers
• American Family
• Nationwide
• USAA*

*USAA is only available to active and retired members of the military and their families.

However, it is important to note that some insurers may require you to complete the buying process by talking to an insurance agent.

“Most companies will quote you a rate online based upon your information and the coverage selections, though many do not complete the process without you speaking to an agent or company representative," O’Brien says.

She adds that they do this to "ensure that you’re buying adequate coverage."

Companies that specifically note that you can complete the entire buying process online include Progressive, Farmers and American Family Insurance. Other companies known to let you purchase insurance online are Geico, USAA, The Hartford and Nationwide.

Buying through an insurance company website

One way to get car insurance online is to buy it directly through an insurer at the company’s website. Most major insurance companies will allow you to get a quote online and complete the process on your computer or phone.

Or, if you prefer, you can call the company and speak to an agent to complete the shopping process.

Purchasing insurance this way can be quite convenient. In less than 30 minutes, you can select and buy a policy and have almost instantaneous coverage.

However, comparison shopping this way is difficult unless you repeat the process with multiple insurers. 

Buying through a comparison site

A car insurance comparison website can give you access to quotes from multiple providers in minutes. This can be a fast, convenient way to compare policy options from many insurance companies. There are more than a dozen such sites, many of which have been in business for years.

Buying car insurance online or through an agent or a broker

Some people prefer to buy car insurance through an agent. By working with an agent, you can get expert help to determine what type of coverage to purchase and how much you need. An agent also takes much of the work of finding and buying a policy off your plate. A broker provides a similar service but may charge a fee.

You may prefer that type of assistance, especially if you are busy or prefer not to bother with shopping for car insurance.

However, if you are a DIY-type of person – or know exactly what you need in a car insurance policy – you may prefer to skip the additional steps of working with someone else.

How to save when shopping for auto insurance online

There are many ways to cut the cost of your car insurance policy.

The most important step is to shop around and compare quotes. The Insurance Information Institute, an insurance industry trade group, recommends getting quotes from at least three insurers and various sources, such as online, directly through an insurance company and an independent insurance agent.

Raising your deductible can also lower your premium costs. However, do not take this step unless you are sure you can pay the deductible amount in the event that you have to file a claim.

Many insurance companies also offer discounts that can lower the cost of car insurance. For example, you might get a discount for bundling various types of insurance policies with one company. Other discounts are available, including lower rates for those who don’t drive much and students who maintain good grades.

Finally, dropping some types of optional insurance – such as collision and comprehensive coverage – can save you money. Just remember that you will have no coverage to repair your own vehicle if you do not purchase this type of insurance. Also, dropping collision and comprehensive coverage might not be an option if you have a car loan.

Next steps, after purchasing the policy

Once you purchase car insurance online, you should expect your coverage to kick in immediately. However, confirming this with your insurer is important to ensure there is no lag between the time you pay for a policy and the moment you are covered.

You should print out proof of insurance and keep it with you in case you need to show it to anyone, such as a police officer if you are pulled over or your local department of motor vehicles if you are registering your vehicle. In some cases, proof of insurance will be mailed to you in the form of a card or available on your phone via your insurer’s app.

As long as you make your premium payments on time, your policy should remain in effect until the policy term ends. Most policies last for six months or a year.

Typically, your insurer will offer to renew your policy for another term once the current term ends.

Frequently asked questions

Is it safe to buy car insurance online?

In the vast majority of situations, it is safe to buy car insurance online. The key is to buy your policy from a reputable insurance company.

Also, when making a transaction via an insurance company website, look for the “s” in “https” at the beginning of the insurer’s URL. This stands for “secure” and tells you the transaction is encrypted to keep it safe.

Is it cheaper to buy auto insurance online?

Buying car insurance online might be cheaper than going through an agent. After all, buying online means you can skip the commissions and fees that might be associated with using an agent.

However, savings are not guaranteed simply because you purchase online. For example, Progressive notes that if you buy a policy through an agent, your rate will include a commission paid to the agent or broker who sells the policy. On the other hand, if you buy directly online from Progressive, your rate will include “the cost of building, staffing, and maintaining the sales centers and marketing costs of that aspect of our business,” the company says.

As always, the best way to get a great price on insurance is to shop around and compare quotes to find the right coverage at the lowest price. 

The rates below are for select large insurance companies with a nationwide presence. Rates were collected from auto insurance comparison site CarInsurance.com and its data partner Quadrant Information Services for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for full coverage insurance policy with liability limits of 100/300/100 and a $500 comprehensive and collision deductible. 

Large insurers aren't the only carriers that offer discounts. Smaller and regional insurance companies can also be a source of savings for customers that qualify. Like the table above, these rates are for a 40-year-old driver of a 2023 Honda Accord LX with a good driving record.

How fast can you get an auto insurance policy online?

You can typically get car insurance online almost instantly. Once you have entered your information, received a quote and paid for your policy, coverage should follow quickly.

“Most companies will let you start your policy on the same day that you purchase it once payment is received,” O’Brien says. “Unlike other types of insurance, auto policies don’t entail a waiting period.”

However, it is crucial that you understand exactly when your policy goes into effect. For example, State Farm says your policy goes into effect “once you receive valid proof of insurance.”

Don’t simply assume you can get instant car insurance online. Make sure you understand the insurer’s rules for when coverage begins.

Can I buy car insurance for a new car online?

When you buy a new car, the dealership probably will require you to have insurance before you drive it off the lot.

If you already have a car and it is insured, there is a good chance that your current car insurance company will immediately extend coverage to the new vehicle. However, contact your insurer before shopping for a car to ensure this is the case.

If you don’t have existing insurance, you must purchase insurance before taking possession of your new car. You can buy such coverage online, and many dealers will also offer assistance with getting coverage. It’s a good idea to know where you plan to buy your insurance before you start the process of buying a new car.

Sources & Methodology

Sources

• Insurance Business. “The pros and cons of online car insurance.” Accessed August 2024.
• Consumer Reports. "Car Insurance Quote Comparison Websites Save You Time, But Watch for Privacy Pitfalls." Accessed August 2024.
• CarInsurance.com. "Is it cheaper to buy car insurance online or through an agent?" Accessed August 2024.
• Insurance Information Institute. “How to save money on car insurance.” Accessed August 2024.
• Progressive. “Car Insurance FAQ.” Accessed August 2024.
• State Farm. “Have auto insurance questions? We've got answers.” Accessed August 2024.
• J.D. Power. "2023 Insurance Shopping Study” Accessed August 2024.

Methodology

Editors collected rate information from auto insurance comparison site CarInsurance.com and its data partner Quadrant Information Services for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for full coverage insurance policy with liability limits of 100/300/100 and a $500 comprehensive and collision deductible. 

We analyzed more than 53 million quotes, more than 34,000 ZIP codes and 170 insurance companies nationwide. 

Note: 100/300/100 means up to $100,000 for the medical bills of those you injure, up to $300,000 per accident for bodily injury liability for all persons injured in one accident, and $100,000 to repair other drivers’ cars and property that you damage.